Post

Markets showing more red this afternoon, as the rotation from Tech into "everything else" has now broken down and most indices are down on the day. Tech/AI areas leading the way down, CoreWeave back down -12%, SOX -3%, along with Tesla falling sharply after its silly flying car news.

Mill Street Research

@millstreetresearch.com

One reason is that oil is jumping higher again, as Trump's attempt to manipulate markets (and voters) by buying diesel from Russia runs into resistance in Congress. Plus more damage to Russian refineries, threats of more bombing of Iran, and less follow-through from Europe in releasing inventories.

Mill Street Research

@millstreetresearch.com

The main issue is whether investors are seeing more cracks in the AI theme, with neoclouds and companies like Oracle that are highly leveraged to OpenAI are under pressure. Anthropic didn't produce much enthusiasm with their latest financial leaks.

16/10/26, 6:32 pm0 reposts3 likes

Mill Street Research

@millstreetresearch.com

Q3 earnings and guidance have a very high bar set at this point, and there are more signs of selling on ostensibly "good" earnings news, along with some signs of less-good earnings news. It's Friday, in October, and the VIX is now above 20 for the first time since late July . . .